Increased sales volumes and the depreciation of the Mexican peso lifted Gruma’s first-quarter revenues, which rose 12% year-on-year.
“During the first quarter, Gruma showed continued growth at its operations with volume increases at all its subsidiaries other than Gruma Centroamérica. This volume growth, coupled with the peso depreciation, allowed Gruma to generate better net sales, EBITDA, and net income figures,” the Mexican maker of the Mission brand revealed.
Gruma said that first-quarter sales increased to MXN17.68bn (US$933.4m), compared to MXN15.83bn in the comparable period of last year. Sales volumes rose 3% in total and the group felt the positive impact of currency exchange.
Operating margins, however, decreased by 50 basis points on the year. Operating income was up 7% to MXN2.18bn. Net income rose 1% to MXN1.28bn. Gruma’s bottom line was depressed by higher financing costs. The company’s operating margin was also hit by mark-to-market corn hedging losses at Gruma USA.